Altogether 15,000 tonnes of Liquid Petroleum Gas, LPG, will be exported to India from Bangladesh, as per the recently signed MoU with India.
Local entrepreneurs have been exporting LPG to Tripura for quite some time. Government and private firms can export 1 million tonnes of LPG. The demand in the country is 70,000 tonnes.
Energy division says that Beximco Petroleum Limited and Omera Petroleum Ltd will trade with Indian Oil Corporation Limited, IOCL.
The IOCL will bottle LPG in Tripura and distribute them. Director of Omera Petroleum, Azam J Chowdhury, said: “This part of India faces a gas crisis and therefore, India wants to take gas from Bangladesh and provide the area with a subsidy.”
While Omera is exporting LPG already, Beximco will begin shortly.
“LPG raw materials are being taken from Mongla and a large portion is processed in Ghorashal and bottled in the country One part is used within the country and the other IS sent to Tripura in tankers.
Currently, 40 to 50 tonnes of LPG are being exported and we want to export 5,000 to 15,000 tonnes in the first year', added Azam J Chowdhury.
Commenting on the possibility of increasing exports, he added: “The capacity of filling stations in India is insufficient. If they increase it, we can also raise export volumes. The road to India from Cumilla is long and we may arrange for storage near the border.”
Energy division says that apart from Beximco and Omera, several other companies have applied to extend LPG gas trade outside the country and their capacity will be assessed gradually.
An energy division official said: “Altogether 56 LPG plants took approval and, of them, 18 private entrepreneurs are supplying LPG. These companies have come with huge investment and since they cannot produce to full capacity, an export option is being given. The condition is that they have to export it after meeting local demand.”
A joint secretary said: “If LPG is exported to India, we can collect a variety of taxes and create employment.”
The process is similar to how our RMG industry works – we bring garment from abroad, stitch them here and send the prepared clothes back to foreign countries. Our private LPG gas manufacturers will buy raw materials, process them and then send the gas to Tripura.”
Private entrepreneurs import Propane, Butane from overseas and then make LPG in the country and many people use it for cooking.
LPG is also being used in cars for fuel. It is a costlier than CNG but less expensive than petrol.